The proposed research project will continue and expand the study "Soteria II: Replication of an Alternative to Hospitalization" (MH25570). Findings suggest that the predominantly interpersonal methods of treatment used with an experimental group of patients are significantly more effective than "usual" (phenothiazine-oriented in a community mental health center) treatment accorded patients in the control group. This study proposes to continue to compare outcomes of two groups of young, first-break schizophrenics. The experimental group is treated in a community residence in which the guiding philosophy holds that the psychotic experience is a crisis that should be taken seriously, and that within the context of warm, supportive, facilitative human relationship the experience can often be transformed into one of growth and learning for the patient. The Soteria (experiental) model of psychosocial treatment is an outgrowth of several contemporary trends: 1) Acknowledgement that phenothiazines are limited in their ability to effect levels of psychosocial functioning and accumulating evidence for their long-term toxicity. Soteria can provide a viable alternative to the current reliance on phenothiazines for the treatment of schizophrenia. 2) Progressive shifting of treatment from inpatient institutions to community-based programs (e.g. community mental health centers). Soteria, as a logical extension of this trend, can provide a surrogate family experience without resorting to hospitalization when existing resources (e.g. school, church, home, etc.) have not met the needs of very disturbed young people. Data obtained at admission, discharge, 6, 12 and 24 months post-admission from a variety of measures which assess outcome in terms of symptoms, levels of psychosocial functioning, and quality of life, will be compared across groups. Short- and long-term cost/benefits will be compared, and characteristics of subgroups of responders and non-responders to the different treatments will be identified.